Utility Analysis

Economics ⇒ Consumer and Producer Behaviour

Utility Analysis starts at 11 and continues till grade 12. QuestionsToday has an evolving set of questions to continuously challenge students so that their knowledge grows in Utility Analysis. How you perform is determined by your score and the time you take. When you play a quiz, your answers are evaluated in concept instead of actual words and definitions used.

See sample questions for grade 11

A consumer derives 12 utils from the first unit, 9 from the second, and 5 from the third unit of a good. What is the marginal utility of the third unit?

A consumer gets 10 utils from the first chocolate, 8 from the second, and 6 from the third. What is the total utility after consuming three chocolates?

A consumer spends Rs. 20 on good X (MUx = 40) and Rs. 10 on good Y (MUy = 20). Is the consumer maximizing utility?

A consumer’s total utility from consuming 2 units of a good is 15 utils, and from 3 units is 18 utils. What is the marginal utility of the third unit?

A consumer’s total utility from consuming 4 units of a good is 40 utils, and from 5 units is 45 utils. What is the marginal utility of the 5th unit?

Define utility in the context of economics.

Describe any two assumptions of the Law of Diminishing Marginal Utility.

Describe the Law of Equi-Marginal Utility.

Explain the concept of utils in utility analysis.

Explain the difference between cardinal and ordinal utility.

Explain the relationship between total utility and marginal utility.

Explain why the Law of Diminishing Marginal Utility does not apply to addictive goods.

Explain why the Law of Diminishing Marginal Utility is important for understanding consumer demand.

Explain why utility is considered subjective.

If a consumer spends all his income on two goods, X and Y, and MUx/Px > MUy/Py, what should the consumer do to maximize utility?

If a consumer’s marginal utility from the 4th unit of a good is zero, should the consumer consume more units? Why or why not?

If the marginal utility of money is constant, what does this imply for the Law of Equi-Marginal Utility?

If the marginal utility of the third apple is 5 utils and the total utility after consuming three apples is 18 utils, what was the total utility after consuming two apples?

State the Law of Diminishing Marginal Utility.